Shares of Advance Auto Parts (AAP) skyrocketed 41.26% in pre-market trading on Thursday following the release of better-than-expected first-quarter results and reaffirmation of its full-year guidance. The automotive aftermarket parts retailer demonstrated resilience in the face of recent tariff implementations and ongoing economic challenges.

Advance Auto Parts reported an adjusted loss of $0.22 per share for the first quarter, significantly outperforming analysts' expectations of an $0.82 per share loss. While this represents a decline from the $0.67 earnings per share in the same quarter last year, it showcases the company's ability to manage costs effectively. Net sales came in at $2.58 billion, surpassing the estimated $2.5 billion, despite a slight 0.6% decrease in comparable store sales.

CEO Shane O'Kelly highlighted the company's progress, stating, "We completed our store footprint optimization during the quarter while also making progress in other strategic initiatives, notably in our Pro performance." The company reported eight consecutive weeks of U.S. Pro comparable sales growth, indicating positive momentum in a key segment. Despite the recently implemented tariffs creating a "highly dynamic economic environment," Advance Auto Parts reaffirmed its full-year 2025 guidance. The company expects sales from continuing operations between $8.4 billion and $8.6 billion, with adjusted earnings per share ranging from $1.50 to $2.50. This optimistic outlook, coupled with planned mitigation actions for current tariffs, has boosted investor confidence in the company's turnaround efforts and future prospects.